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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (48708)	11/8/2012 6:07:18 AM
From: Johnny Canuck	Respond to of 69852

Bond guru predicts Apple's stock price will fall to $425 Doubleline Capital's Jeffrey Gundlach says the company seems to have lost it ability to innovate, calling out the iPad Mini as an example. by Steven Musil November 7, 2012 7:19 PM PST A noted bond investor expects Apple stock to continue its downward slide for a while, saying that the company seems to have lost its ability to innovate. Jeffrey Gundlach, the CEO and co-founder of investment firm Doubleline Capital, told CNBC today he expects Apple's stock price, which has declined more than 20 percent since September 19, to slip to as slow as $425. Shares were off 3.38 percent today, falling $22.20 to close at $558. Gundlach said he has been struck by the "obsession" with Apple's stock. "It seems like every meeting I have, everyone owns it," he said, adding that he started shorting the stock in April at $610. "It's sort of been right, sort of been wrong," he said of the decision, presumably because the stock peaked at $705 in mid-September. He pointed to the recently released 7.9-inch iPad Mini as an example of what he called a lack of innovation at the company. "Once you start just changing the size of your products, I really think you're not exactly innovating," he said. "I'm wondering if they're going to start coming out with the tutti-frutti iPad, where it comes out in different colors." He also noted that investor fears of higher capital gains tax rates may have also played a role in the stock's decline. Gundlach's prediction is in sobering contrast to a prediction earlier this year that put a $1,000 price target on Apple's shares. In his April prediction, Topeka Capital Markets' Brian White said "an ever expanding portfolio of innovative products" was fueling "Apple fever."